russia’s Domestic Market Is Becoming Increasingly Chinese

Chinese businesses continue to actively expand into the russian market. As of September 2025, there are about 13,000 legal entities with Chinese capital operating in the rf, which is by 23  % more than at the end of 2024. The total revenue of these companies exceeded $41.3 billion last year.

Chinese managers are trying to localize the entire production process in russia, i.e., to take control of industrial assets in the rf. This currently allows them to reduce the cost of production and take advantage of russian government business support programs. At the same time, Chinese companies’ access to Beijing’s investment opportunities puts them in a privileged position compared to russian manufacturers, who are suffering from a liquidity shortage.

China accounts for approximately one-third of russia’s foreign trade, while russia accounts for only 4–5 % of China’s foreign trade. This imbalance makes it possible not only to respond quickly to consumer demand, but also to squeeze russian manufacturers out of their own domestic market. For example, Chinese truck manufacturers already control more than 53 % of sales in the rf’s market.